Beijing wants to increase the share of electric vehicles in the PRC market by 2025, up to a quarter

3 December 2019

Sales of traditional cars with internal combustion engines already in China reached its peak

Although in recent years China's rapidly growing demand for electric cars and electric buses (BEV and PHEV, and HEV and FCEV), they still account for only about 5% of car sales in the country. In addition, sales of electric cars began to decline in the last four months in a row after the government reduced subsidies for the purchase of electric vehicles and hybrids.
However, Beijing strengthens the "target signals" leading car manufacturers, showing that electric cars remain a state priority, because the policy of the PRC on combating atmospheric pollution and reducing dependence on imported oil remains unchanged. At the same time, regulators seek to reduce "the distribution" excessively bred to manufacturers of electric vehicles (especially the lower classes with large enough power reserve – ed.), as state support has strengthened concerns about inflating an investment bubble in the sector.

Analyst BloombergNEF Colin Mckercher believes that: "while the governments of various countries, including China, abandon subsidies for electric vehicles (the world economy is sinking into recession, that money isn't enough – ed.) their policy remains the most important driving force in support of the demand for electric vehicles."

China is promoting electric cars potrebitelyam private offering exemption of sales tax benefits in the sweepstakes registration plates (important issue for Central cities, where the price for a new car now exceeds the cost of most new models of cars – ed.) and fewer restrictions on the use of electric and hybrid cars in cities.

Colin Mckercher wrote in his Twitter: "the Share of electric cars sales in the area of 20-25% by 2025 means that sales of traditional vehicles with internal combustion engines (now designated as ICE – ed.) in the world's largest car market has already reached its peak".

In the previous version of new draft policy regarding the development of NEV, published in the beginning of this year, Beijing had planned for 2035 60% mandatory bar sales of electric vehicles. However, in the last version of the project this percentage for specific 2035 was removed. Instead, the draft States that this year, battery electric vehicles (BEV) will be massive, and the vehicles on fuel cells (FCEV) will be widely available in addition, all vehicles used in the municipal sector (municipal buses as well – ed.) will work on electricity.

The Secretary-General of branch of China Association of passenger vehicles (CAAD) of Dongsu Tsui said: "technological breakthroughs there is always uncertainty, and more sensible to aim for a more intimate time frame, what we see in this case. The demand for cars that run on new sources of energy (NEV – ed.), may recover in the next two years, so the political goal set for 2025, it seems reasonable."
Now in the automotive market of China has seen a long decline (for 18 consecutive months – ed.) which (taking into account falling of demand for PEV – ed.) inhibits the world EV as the share of China accounts for about half of global sales of cars with electric drive.

PS the slump in the market of electric and hybrid cars in China in the second half of this year (in October, the drop in passenger NEV made up 46.8 per cent to 49.9 per thousand, and for 10 months of sales growth has slowed down to 22.6% and 666,1 thousand) as a response to the Chinese community of motorists on the sharp curtailment of subsidies by Beijing, the purchase of electric cars and hybrids are the most important today, the proof that modern BEV and PHEV, the basis of the drive which is the current generation Gidrostroiteley Li-ion batteries with the actual energy intensity by more than 250 WH/kg (and fire hazard), not competitive against conventional cars (ICE) and without state financial "pomochey" not going anywhere. So that Chinese and global electric mobility markets just crave the appearance of a new generation of lithium-polymer batteries with solid electrolyte and without rare earth elements with two indicators as specific energy consumption (not less than 500 W•h / kg) and cost of 1 kWh of the installed battery's capacity. His contribution here can make hydrogen fuel cells..